GST on Labour Welfare Cess, Goods and Services Tax - GST

[Krishna Murthy]

Sir, is GST applicable on Labour Welfare Cess collected under BOCW Act. Sec 15 of CGST says any taxes, cesses, duties other than GST should be included in valuation. Any specific notification or circular in this matter?

Posts / Replies

[KASTURI SETHI]

No deduction on account of Labour Welfare Cess is allowed from transaction value to arrive at taxable value. In other words, GST is to be paid on Labour Welfare Cess. Only Compensation Cess and Kerala Flood Cess are to be excluded from transaction value. Views of other experts are also solicited.

[Rajagopalan Ranganathan]

Sir,

According to Section 15 92) (a) of CGST Act, 2017 "any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act (CGST Act), the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier.

Therefore the views expressed by Shri. Sethi Sir is legally valid.

[Ganeshan Kalyani]

The section is clear in this aspect. That is other than gst component all other taxes shall form part of transaction value. Since section is clear there is not separate notification in this respect.